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Reforming the EU budgetary procedure: is Codecision a step forward?

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  • Luisa Giuriato

Abstract

Codecision is the main EU legislative procedure and the 2007 Reform Treaty draft has adopted it to improve the budgetary process. However, at close examination, codecision and the current budgetary process show an identical structure. Both are designed as non-cooperative alternating offers bargaining games between institutions and both, although in different measure, have gone through periods of interinstitutional deadlocks and conflicts, which can be ascribed to the insufficiency of the non-cooperative bargaining setup with respect to the task of providing for joint decision making by the Parliament and the Council of Ministers: in particular, the opportunistic interpretation of the Treaty provisions by the Parliament in the 1980s was one of the consequences of the strict bargaining design. The lacking elements for joint decision-making have been gradually inserted in the procedures by means of informal negotiation institutions, which are not only mechanisms for equilibrium selection but also corrective devices to strict non-cooperative procedures. In the change from the current budgetary procedure to the one designed in the Reform Treaty, the Parliament does not seem to gain a formal ‘dominant position’, whereas the Commission improves its scope for action and the Council consolidates its role.

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Bibliographic Info

Paper provided by University of Rome La Sapienza, Department of Public Economics in its series Working Papers with number 114.

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Length: 37
Date of creation: Jul 2008
Date of revision:
Handle: RePEc:sap:wpaper:wp114

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Keywords: EU’s finances; legislative codecision; budgetary procedure; 2007 Reform Treaty.;

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References

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  1. Alberto Alesina & Ricardo Hausmann & Rudolf Hommes & Ernesto Stein, 1996. "Budget Institutions and Fiscal Performance in Latin America," NBER Working Papers 5586, National Bureau of Economic Research, Inc.
  2. Alberto Alesina & Roberto Perotti, 1994. "The Political Economy of Budget Deficits," NBER Working Papers 4637, National Bureau of Economic Research, Inc.
  3. Stefan Napel & Mika Widgrén, 2003. "Bargaining and Distribution of Power in the EU's Conciliation Committee," CESifo Working Paper Series 1029, CESifo Group Munich.
  4. Stefan Napel & Mika Widgrén, 2004. "The Inter-Institutional Distribution of Power in EU Codecision," CESifo Working Paper Series 1347, CESifo Group Munich.
  5. repec:fth:eeccco:96 is not listed on IDEAS
  6. Henrik Enderlein & Johannes Lindner & Oscar Calvo-Gonzalez & Raymond Ritter, 2005. "The EU budget – how much scope for institutional reform?," Public Economics 0509005, EconWPA.
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Cited by:
  1. Andreas Sachs, 2013. "Governance Structures in Europe," WWWforEurope Deliverables series 2, WWWforEurope.
  2. Bas van Aarle, 2013. "Surveillance and Control of Fiscal Consolidation on a Supranational Level," WWWforEurope Working Papers series 46, WWWforEurope.

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